21. On May 31, the Cash account of Bottle's R US had a normal balance of $6,200. During May, the account was debited for a total of $13,400 and credited for a total of $12,700. What was the balance in the Cash account at the beginning of May?

Multiple Choice

• A $0 balance.

• A $6,900 debit balance.

• A $6,900 credit balance.

• A $5,500 debit balance.

• A $5,500 credit balance.

22. During the month of March, Harley's Computer Services made purchases on account totaling $46,900. Also during the month of March, Harley was paid $13,100 by a customer for services to be provided in the future and paid $38,600 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $79,000, what is the balance in accounts payable at the end of March?

Multiple Choice

• $87,300.

• $100,400.

• $8,300.

• $74,200.

• $6,600.

23. Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

1. Andrea invested $13,600 cash in the business in exchange for common stock.
2. Andrea contributed $21,000 of photography equipment to the business in exchange for common stock.
3. The company paid $2,200 cash for an insurance policy covering the next 24 months.
4. The company received $5,800 cash for services provided during January.
5. The company purchased $6,300 of office equipment on credit.
6. The company provided $2,850 of services to customers on account.
7. The company paid cash of $1,600 for monthly rent.
8. The company paid $3,200 on the office equipment purchased in transaction #5 above.
9. Paid $285 cash for January utilities.

Based on this information, the amount of total stockholders equity-reported on the Balance Sheet at the end of the month would be:

Multiple Choice

• $32,800.

• $40,400.

• $32,350.

• $41,365.

• $31,865.

24. Joe Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:

1. Jackson invested $43,000 cash in the business in exchange for common stock.
2. Jackson contributed $118,000 of equipment to the business.
3. The company paid $3,800 cash to rent office space for the month of March.
4. The company received $34,000 cash for repair services provided during March.
5. The company paid $8,000 for salaries for the month of March.
6. The company provided $4,800 of services to customers on account.
7. The company paid cash of $2,300 for utilities for the month of March.
8. The company received $4,900 cash in advance from a customer for repair services to be provided in April.
9. The company paid Jackson $6,800 cash as a dividend.

Based on this information, net income for March would be:

Multiple Choice

• $24,700.

• $31,400.

• $7,100.

• $6,600.

• $31,500.

25. If Houston Company billed a client for $16,000 of consulting work completed, the accounts receivable asset increases by $16,000 and:

Multiple Choice

• Accounts payable decreases $16,000.

• Accounts payable increases $16,000.

• Cash increases $16,000.

• Revenue increases $16,000.

• Revenue decreases $16,000.